Best BRIC Stock Rally Since 1997 Seen Doomed as Rates Rise
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The longest rally in developing-nation stocks since 1997 may be ending as higher interest rates in Brazil, Russia, India and China curb earnings growth.
For the first time in two years, emerging-market analysts are cutting profit estimates more than they’re raising them, consumer stocks are trailing energy producers and shares of smaller companies are losing to larger equities, data compiled by Bloomberg and Morgan Stanley show. The same reversals foreshadowed the end of the emerging-market rally in 2008.